Answer / ramalakshmi krishnakumar

Preference Capital is the capital which carries preference
over Equity capital at the time of Payment of dividend and
at the time of winding up of the comapany.

Answer / apoorv sarkari

Preference capital means the shareholders of a company
holding preference share are not the owners of the co.The
preference share holders get fixed percentage of dividend
from the profit earned by the company.Also they get
preference over equity share holdrs during the time of
payment of dividend and during the time of winding up of
the company.

Answer / gayathri

Preference Capital means they are not owners ofthe company
but they earned fixed percent Dividend on Net profit.In
case the Company in loss they are not responsible only
equity Holders is responsible.

Answer / veena

Preference Shares Are designed for investors who do not
wish to take the degree of risk associated with being an
ordinary shareholder. They offer a guaranteed dividend,
although this fixed level of return can potentially be less
than that received by an Ordinary Shareholder. Preference
Shareholders are not strictly owners of the business and
therefore have limited voting rights, in comparison to the
Ordinary Shareholder.

Answer / mallareddy

Prefrence capital itself gives the meaning prefrence is to
be given for the preference share holder when the profit
distrubtution and they are given the preference when
company is going for wind off....

it's simpy to be said company is taking loan and has to pay
back certen fixed % amount...

Answer / veena

Preferance capital is raised by issueing preferance shares.
Preferance shares are those shares which carries certain
preferential rights at the time of declaring dividend and
at the time of winding up of the company.They are also
eligible to get a fixed pecentage of divided.

Answer / reddydeeps

the word preferance says that they are given preferance
over equity shares. and they r given fixed rate of
dividents
& given first preferance when liquidation of company takes
place. & preferance share are not issued they r gifted by
company either to the existing share holders or to the
third party...

Answer / om p

Preference capital is simply a kind of loan for a company
on which the company has to pay a certain percentage on the
net profit to the share holders. These shareholders have no
right in voting of the company, but they will be given
preference means paid first at the time of distribution of
profit or at the time of liquidition of the company.

Answer / sumitra.raghavan

the amount of money raised by issue of preference share is called preference share capital.these are called pref share coz these share holders have prefernce over equity share holders in terms of div payment and settlement in case of winding up of busn

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